TY - JOUR
T1 - The role of the media in the internet IPO bubble
AU - Bhattacharya, Utpal
AU - Galpin, Neal
AU - Ray, Rina
AU - Yu, Xiaoyun
PY - 2009/6/1
Y1 - 2009/6/1
N2 - We read all news items that came out between 1996 and 2000 on 458 Internet initial public offerings (IPOs) and a matching sample of 458 non-Internet IPOs (a total of 171,488 news items) and classify each news item as good news, neutral news, or bad news. We first document that the media were more positive for Internet IPOs in the period of the dramatic rise in share prices and more negative for Internet IPOs in the period of the dramatic fall in share prices. We then document that media hype is unable to explain the Internet bubble: A 1,646% difference exists in returns between Internet stocks and non-Internet stocks from January 1, 1997, through March 24, 2000 (the market peak), and the media can explain only 2.9% of that.
AB - We read all news items that came out between 1996 and 2000 on 458 Internet initial public offerings (IPOs) and a matching sample of 458 non-Internet IPOs (a total of 171,488 news items) and classify each news item as good news, neutral news, or bad news. We first document that the media were more positive for Internet IPOs in the period of the dramatic rise in share prices and more negative for Internet IPOs in the period of the dramatic fall in share prices. We then document that media hype is unable to explain the Internet bubble: A 1,646% difference exists in returns between Internet stocks and non-Internet stocks from January 1, 1997, through March 24, 2000 (the market peak), and the media can explain only 2.9% of that.
UR - http://www.scopus.com/inward/record.url?scp=72249089402&partnerID=8YFLogxK
U2 - 10.1017/S0022109009990056
DO - 10.1017/S0022109009990056
M3 - Article
AN - SCOPUS:72249089402
VL - 44
SP - 657
EP - 682
JO - Journal of Financial and Quantitative Analysis
JF - Journal of Financial and Quantitative Analysis
SN - 0022-1090
IS - 3
ER -